Dismal start for Asian markets

TOKYO, Japan -- Tokyo stocks opened sharply weaker on Monday at a fresh 16-year low, led by falls in Fujitsu Ltd and other major tech shares amid earnings jitters and persistent weakness in their U.S. peers.

"Foreigners and domestic institutional investors are expecting another round of profit warnings from the tech sector," said a trader at a major asset management firm.

Toshiba Corp, the nation's number one chip producer, dropped 4.1 percent to 561 yen, helping shove the benchmark Nikkei average down 1.59 percent or 181.63 points to 11,263.91.

The Nikkei fell as low as 11,239.45 earlier, its lowest point since November 27, 1984 when it closed at 11,184.12.

Major PC and chipmaker Fujitsu was down 2.15 percent or 26 yen at 1,185 by 0013 GMT following weekend media reports it plans to cut 10 percent of its workforce.

Traders said the news would be a positive step forward for Fujitsu, but added that it underscored the tough times facing Japan's semiconductor makers.

"Select real estate firms and companies seen benefitting from urban revitalisation plans could attract buyers. But that's not enough to offset poor sentiment on the tech sector," the trader added.

The capital-weighted TOPIX index gave up 1.28 percent or 14.94 points to 1,154.87.

Providing an additional cue for selling was the tech-laden Nasdaq in the U.S., which finished Friday down 3.28 percent at a four-month low of 1,867.01.

Speculation is rife that a number of other high-profile, chip-related shares such as Kyocera Corp and Toshiba will soon revise down their earnings forecasts. Kyocera lost 3.39 percent to 7,700 yen.

Australia, Korea open weaker

It was a negative start in Australia also Monday morning despite a bouyant profit for the market's leading resource stock BHP Billiton.

The All Ordinaries index was 47 points lower at 3228.4 points after about 90 minutes of trading with market leaders News Corporation and Telstra both suffering.

After a brief rally on Friday News Corp shed 62c to A$16.50 in early business while Telstra lost 8c to A$4.84.

BHP Billiton was also weaker despite posting a $2.2 billion annual profit Monday morning, the company's first result as a merged entity.

BHP scrip was 11c lower at A$9.13.

Regional airline player Qantas continued to flag, easing 8c to A$2.80.

In Korea, the Kospi followed the regional trend lower trading 9.83 points lower at 571.16 in early action.

Reuters contributed to this report.